AstraZeneca Annual Report and Form 20-F Information 2011

More documents

Recommendations

Info

Financial Statements18 Post-retirement benefits continuedRest of GroupThe IAS 19 positions as at 31 December 2011 are shown below for each of the other countries with significant defined benefit plans. These plansaccount for 91% of the Group’s defined benefit obligations outside of the UK. These plans are funded in line with the financing principles andcontributions paid as prescribed by the funding framework.> > The US defined benefits programme was actuarially revalued at 31 December 2011, when plan obligations were $1,987m and plan assetswere $1,593m. This includes obligations in respect of the non-qualified plan which is largely unfunded.> > The Swedish defined benefits programme was actuarially revalued at 31 December 2011, when plan obligations were estimated to amountto $1,545m and plan assets were $902m.> > The German defined benefits programme was actuarially revalued at 31 December 2011, when plan obligations amounted to $258m andplan assets were $23m.On current bases, it is expected that contributions (excluding those in respect of past service cost) during the year ended 31 December 2012to the four main countries will be $664m.Post-retirement benefits other than pensionsIn the US, and to a lesser extent in certain other countries, AstraZeneca’s employment practices include the provision of healthcare and lifeassurance benefits for retired employees. As at 31 December 2011, some 3,431 retired employees and covered dependants currently benefitfrom these provisions and some 10,694 current employees will be eligible on their retirement. AstraZeneca accrues for the present value ofsuch retiree obligations over the working life of the employee. In practice these benefits will be funded with reference to the financing principles.The cost of post-retirement benefits other than pensions for the Group in 2011 was $12m (2010: $18m; 2009: $19m). Plan assets were $290mand plan obligations were $330m at 31 December 2011. These benefit plans have been included in the disclosure of post-retirement benefitsunder IAS 19.Financial assumptionsQualified independent actuaries have updated the actuarial valuations under IAS 19 of the major defined benefit schemes operated by the Groupto 31 December 2011. The assumptions used by the actuaries are chosen from a range of possible actuarial assumptions which, due to thelong-term nature of the schemes, may not necessarily be borne out in practice. These assumptions were as follows:2011 2010UK Rest of Group UK Rest of GroupInflation assumption 3.2% 2.3% 3.6% 2.3%Rate of increase in salaries – 1 3.4% – 1 3.4%Rate of increase in pensions in payment 3.1% 0.9% 3.5% 0.9%Discount rate 4.8% 4.1% 5.5% 4.9%Long-term rate of return expected at 31 DecemberEquities 7.5% 7.4% 8.0% 7.9%Bonds 4.5% 3.8% 5.1% 5.0%Others 2.8% 3.8% 6.1% 4.7%Rate of increase in medical costs (initial rate) 10.0% 9.0% 10.0% 10.0%1Pensionable pay frozen at 30 June 2010 levels following UK fund changes.The expected return on assets is determined with reference to the expected long-term level of dividends, interest and other returns derived fromthe plan assets, together with realised and unrealised gains or losses on the plan assets, less any costs of administering the plan, less any taxpayable by the plan. The expected returns are based on long-term market expectations and analysed on a regular basis to ensure that anysustained movements in underlying markets are reflected.Demographic assumptionsThe mortality assumptions are based on country-specific mortality tables. These are compared to actual AstraZeneca experience and adjustedwhere sufficient data is available. Additional allowance for future improvements in life expectancy is included for all major schemes where thereis credible data to support this continuing trend.The table below illustrates life expectancy assumptions at age 65 for male members retiring in 2011 and members expected to retire in 2031(2010: 2010 and 2030 respectively).Life expectancy assumption for a male member retiring at age 65Country 2011 2031 2010 2030UK 22.9 24.7 22.7 24.6US 20.0 21.4 19.8 21.3Sweden 20.4 22.4 20.4 22.4Germany 18.3 21.0 17.9 20.7166 Financial StatementsAstraZeneca Annual Report and Form 20-F Information 2011
18 Post-retirement benefits continuedPost-retirement scheme deficitThe assets and obligations of the defined benefit schemes operated by the Group at 31 December 2011, as calculated in accordance withIAS 19 ‘Employee Benefits’, are shown below. The fair values of the schemes’ assets are not intended to be realised in the short term and maybe subject to significant change before they are realised. The present value of the schemes’ obligations is derived from cash flow projectionsover long periods and is therefore inherently uncertain.UK$mRest of Group$m2011 2010Total$mUK$mRest of Group$mTotal$mScheme assetsEquities 2,221 1,084 3,305 2,437 1,153 3,590Bonds 2,961 1,382 4,343 2,660 1,124 3,784Others 506 365 871 52 341 393Total fair value of scheme assets 5,688 2,831 8,519 5,149 2,618 7,767Present value of scheme obligations (7,042) (4,157) (11,199) (6,554) (3,691) (10,245)Past service cost not yet recognised – 6 6 – 6 6Deficit in the scheme as recognisedin the statement of financial position (1,354) (1,320) (2,674) (1,405) (1,067) (2,472)Fair value of scheme assetsUK$mRest of Group$m2011 2010Total$mUK$mRest of Group$mAt beginning of year 5,149 2,618 7,767 4,853 2,402 7,255Expected return on scheme assets 340 162 502 305 146 451Expenses (7) – (7) (7) – (7)Actuarial (losses)/gains (4) 35 31 244 (4) 240Exchange – (38) (38) (204) (4) (208)Employer contributions 487 246 733 224 245 469Participant contributions 9 3 12 28 3 31Benefits paid (286) (195) (481) (294) (170) (464)Scheme assets’ fair value at end of year 5,688 2,831 8,519 5,149 2,618 7,767Total$mThe actual return on the plan assets was a gain of $533m (2010: gain of $691m).Movement in post-retirement scheme obligationsUK$mRest of Group$m2011 2010Total$mUK$mRest of Group$mPresent value of obligation in scheme at beginning of year (6,554) (3,691) (10,245) (7,055) (3,591) (10,646)Current service cost (49) (110) (159) (97) (114) (211)Past service (cost)/credit (32) (37) (69) (39) 106 67Participant contributions (9) (3) (12) (28) (3) (31)Benefits paid 286 195 481 294 170 464Other finance expense (364) (175) (539) (371) (172) (543)Expenses 7 – 7 7 – 7Actuarial (loss)/gain (328) (444) (772) (221) (65) (286)Settlements and curtailments – 53 53 693 6 699Exchange 1 55 56 263 (28) 235Present value of obligations in scheme at end of year (7,042) (4,157) (11,199) (6,554) (3,691) (10,245)The obligation arises from the following plans:UK$mRest of Group$mTotal$m2011 2010Total$mUK$mRest of Group$mFunded (7,016) (3,689) (10,705) (6,526) (3,232) (9,758)Unfunded (26) (468) (494) (28) (459) (487)Total (7,042) (4,157) (11,199) (6,554) (3,691) (10,245)Total$mFinancial StatementsAstraZeneca Annual Report and Form 20-F Information 2011 Financial Statements 167
Page 1 and 2:
healthAstraZeneca Annual Reportand
Page 3 and 4:
Financial summary$33.6bnSales down
Page 5 and 6:
China: We announcedour decision to
Page 7 and 8:
OverviewOperational overview7979 pr
Page 9 and 10:
Chairman’s StatementI would like
Page 11 and 12:
Chief Executive Officer’s ReviewA
Page 13 and 14:
The process of getting a drug to ma
Page 15 and 16:
OverviewnovationInnovation drives p
Page 17 and 18:
Our Strategy and PerformanceMore pe
Page 19 and 20:
Using the full range of innovative
Page 21 and 22:
Our strategyMissionto make the most
Page 23 and 24:
Our strategic priorities to 2014Our
Page 25 and 26:
Our performance in 2011Our performa
Page 27 and 28:
Business shapePeopleResponsible bus
Page 29 and 30:
Strategy and PerformanceaborationIm
Page 31 and 32:
Delivering our strategyOur strategy
Page 33 and 34:
Development projects20112010 129342
Page 35 and 36:
Investing in capabilitiesA core com
Page 37 and 38:
Patent expiries for our key markete
Page 39 and 40:
our Established Markets footprint i
Page 41 and 42:
Product qualityWe are committed to
Page 43 and 44:
We have a global approach, supporte
Page 45 and 46:
ComplianceWe ensure a culture of et
Page 47 and 48:
tegrityBusiness ReviewWe are dedica
Page 49 and 50:
Delivering our strategyResponsible
Page 51 and 52:
India has the fastest growing numbe
Page 53 and 54:
ProtestsAstraZeneca acknowledges th
Page 55 and 56:
Also in 2011, the DIHR in collabora
Page 57 and 58:
healthcollaborationRaising breast c
Page 59 and 60:
Pipeline by Therapy Area at 31 Dece
Page 62 and 63:
Therapy Area ReviewIn September, we
Page 64 and 65:
Therapy Area ReviewGastrointestinal
Page 66 and 67:
Therapy Area ReviewInfectionTherapy
Page 68 and 69:
Therapy Area ReviewIn the pipelineI
Page 70 and 71:
Therapy Area ReviewOur financial pe
Page 72 and 73:
Therapy Area ReviewOncologyTherapy
Page 74 and 75:
Therapy Area Reviewendpoints of pro
Page 76 and 77:
Therapy Area ReviewOur financial pe
Page 78 and 79:
healthinnovationReducing the number
Page 80 and 81:
Geographical ReviewUSAstraZeneca is
Page 82 and 83:
Geographical ReviewEmerging Markets
Page 84 and 85:
Disciplined execution of our strate
Page 86 and 87:
Financial ReviewMeasuring performan
Page 88 and 89:
Financial ReviewResults of operatio
Page 90 and 91:
Financial ReviewFinancial position
Page 92 and 93:
Financial ReviewCapitalisation and
Page 94 and 95:
Financial ReviewResults of operatio
Page 96 and 97:
Financial ReviewSensitivity analysi
Page 98 and 99:
Financial Reviewover the performanc
Page 100 and 101:
healthcollaborationFighting the ris
Page 102 and 103:
Board of Directors and Senior Execu
Page 104 and 105:
Board of Directors and Senior Execu
Page 106 and 107:
Corporate Governance ReportOperatio
Page 108 and 109:
Corporate Governance ReportThe Boar
Page 110 and 111:
Corporate Governance ReportDuring 2
Page 112 and 113:
Corporate Governance ReportBusiness
Page 114 and 115:
Corporate Governance ReportPolitica
Page 116 and 117:
Directors’ Remuneration ReportDav
Page 118 and 119: Directors’ Remuneration ReportVar
Page 120 and 121: Directors’ Remuneration ReportAdd
Page 122 and 123: Directors’ Remuneration ReportSum
Page 124 and 125: Directors’ Remuneration ReportSum
Page 126 and 127: Directors’ Remuneration ReportIn
Page 128 and 129: Directors’ Remuneration ReportPer
Page 130 and 131: Directors’ Remuneration ReportGai
Page 132 and 133: RiskManagement reporting and assura
Page 134 and 135: RiskCommercialisation and business
Page 136 and 137: RiskCommercialisation and business
Page 138 and 139: RiskSupply chain and delivery risks
Page 140 and 141: RiskEconomic and financial risks co
Page 142 and 143: Financial StatementsPreparation of
Page 144 and 145: Financial StatementsConsolidated St
Page 146 and 147: Financial StatementsConsolidated St
Page 148 and 149: Financial StatementsGroup Accountin
Page 150 and 151: Financial StatementsProperty, plant
Page 152 and 153: Financial StatementsNotes to the Gr
Page 154 and 155: Financial Statements3 Finance incom
Page 156 and 157: Financial Statements4 Taxation cont
Page 158 and 159: Financial Statements6 Segment infor
Page 160 and 161: Financial Statements9 Intangible as
Page 162 and 163: Financial Statements10 Other invest
Page 164 and 165: Financial Statements15 Financial in
Page 166 and 167: Financial Statements15 Financial in
Page 170 and 171: Financial Statements18 Post-retirem
Page 172 and 173: Financial Statements20 Share capita
Page 174 and 175: Financial Statements23 Financial ri
Page 176 and 177: Financial Statements23 Financial ri
Page 178 and 179: Financial Statements24 Employee cos
Page 184 and 185: Financial Statements25 Commitments
Page 192 and 193: Financial Statements26 LeasesTotal
Page 194 and 195: Financial StatementsIndependent Aud
Page 196 and 197: Financial StatementsCompany Account
Page 198 and 199: Financial Statements4 ReservesShare
Page 200 and 201: Financial StatementsGroup Financial
Page 202 and 203: Development PipelineNCEsPhase III/R
Page 204 and 205: Development PipelineNCEsPhases I an
Page 206 and 207: Shareholder Information> For shares
Page 208 and 209: Shareholder InformationDocuments on
Page 210 and 211: Corporate InformationHistory and de
Page 212 and 213: GlossaryThe following abbreviations
Page 214 and 215: Index2011 performance summary 23Acc
Page 216: Contact informationRegistered offic
show all

AstraZeneca Annual Report and Form 20-F Information 2011

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?